The Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules-2026

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Dated: 04.02.2026

The Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules-2026

The Ministry of Mines, Government of India, has introduced the Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules, 2026 to regulate and prevent illegal mining, storage, and transportation of minerals extracted from offshore areas. These rules aim to ensure sustainable mining practices, protect natural resources, and establish a robust monitoring and enforcement framework. In this blog, we will explore the key provisions and implications of these rules.

Overview of the Rules

The Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules, 2026 were notified on February 3, 2026, under the Offshore Areas Mineral (Development and Regulation) Act, 2002. These rules apply to all minerals in offshore areas, excluding mineral oils and hydrocarbons. They provide a comprehensive framework for regulating mining activities, transportation, storage, and export of minerals extracted from offshore areas.

Key Provisions of the Rules

1. Applicability

The rules apply to all offshore minerals except mineral oils and hydrocarbons. However, exemptions are provided for:

Individuals or entities conducting scientific research without commercial intent.
Government departments, institutions, or agencies notified by the Central Government.

2. Definitions

The rules define key terms such as:

Illegal Mining: Any mining activity conducted without proper operating rights or outside the designated offshore area.
Illegal Storage: Storing minerals in violation of the Act or rules.
Illegal Transportation: Transporting minerals without adhering to the prescribed regulations.
Electronic Monitoring System: A real-time system for tracking vessels, monitoring mineral extraction, and ensuring compliance.

3. Prohibitions

The rules strictly prohibit production, excavation, storage, sale, transportation, or processing of minerals without compliance with the Act and rules.

Monitoring and Regulation

Electronic Monitoring System 

The rules mandate the deployment of an electronic monitoring system by holders of operating rights and owners of carriers. This system must track vessels, monitor mineral extraction, and ensure compliance with regulations. All carriers and mechanized machinery must be registered online on the Offshore Mining Regulation Web Portal.

Transit Permit

Before dispatching minerals outside the lease area, holders of operating rights must provide detailed information on the web portal, including:

Quantity and grade of minerals.
Consignee details.
Carrier information.
Route and destination details.
Payment of royalties and other charges.
Customs clearance for exports.

A digitally signed transit permit is then issued, which must be retained during transportation.

First Point of Discharge 

The first onshore unloading location in India is designated as the “first point of discharge.” At this location, the weight and grade of minerals are verified against the dispatch details. A proper weighment system must be installed and maintained as per the Indian Bureau of Mines’ specifications.

Inspection, Seizure, and Enforcement

Inspection and Verification 

Authorized officers have the power to inspect, verify, and draw samples of minerals at any location, including during transit. They can also examine accounts and related documents.

Seizure of Property 

If illegal mining, storage, or transportation is detected, authorized officers can seize and detain property, including carriers, mines, or equipment. Seized property can be released upon furnishing security in the form of cash or a bank guarantee.

Public Auction

Seized minerals can be sold through public auction, with proceeds deposited into the Consolidated Fund of India.

Support from Authorities 

The enforcement of these rules is supported by the Indian Navy, Indian Coast Guard, state police forces, and other government agencies.

Appeals and Penalties 

Appeals

Any person aggrieved by actions taken under these rules can appeal to the Central Government within three months.

Penalties

Violations of the rules can result in:

Imprisonment for up to five years.
Fines ranging from ₹50 lakh to ₹1 crore.
Additional fines of up to ₹5 lakh per day for continuing violations.

Authorized officers may also recommend the cancellation of operating rights or seize tools, equipment, or carriers used in illegal activities.

Implications of the Rules

The Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules, 2026 are a significant step toward ensuring responsible and sustainable mining practices in offshore areas. By mandating electronic monitoring systems, transit permits, and weighment systems, the rules aim to enhance transparency and accountability in the mining sector. The stringent penalties and enforcement measures serve as a deterrent against illegal activities, protecting India’s valuable mineral resources.

Furthermore, the involvement of multiple government agencies, including the Indian Navy and Coast Guard, ensures robust enforcement and monitoring. These rules also emphasize the importance of scientific research and the role of the Atomic Minerals Directorate for Exploration and Research in regulating atomic minerals.

Conclusion

The Offshore Areas Mineral (Prevention of Illegal Mining and Transportation) Rules, 2026 reflect the government’s commitment to sustainable development and resource conservation. By addressing illegal mining, storage, and transportation, these rules aim to safeguard India’s offshore mineral wealth while promoting responsible practices. As the rules come into effect, stakeholders must ensure compliance to contribute to the nation’s economic growth and environmental sustainability.

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Source: Ministry of Mines

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